Hi Guys,

Almost 2 years later and I felt like writing an update:

I am now 27 years old, still married :) and no kids on the scene yet. I’m still property investing and here’s where I am up to:

Combined income is around the same $190000.

Investment property 1: (2012) Purchase price $245000, Bank valued at $305000 on I/O, secured by itself – rent $310 p/wk.
Unit 1: Build price $235000, Bank valued at $300000 on I/O, secured by itself – $295 p/wk.
Unit 2: Build price $235000, Bank valued at $310000 on I/O, secured by itself ($180000 in offset account and I’m living in the unit)
Investment property 3: Purchase price $269000, recent purchase, cash security term deposit of around $56000 – rent $320 p/wk

This is a very neutral type of set up for me and this is how I prefer to do it. I know that I could release some equity and pick another house or two, but I like the buffer they provide and I also like the cash flexibility per week.

• This reply was modified 9 years, 9 months ago by  bullet46.

That sounds like good advice. I was considering doing just that, attend the next inspection.

The property is located in QLD.

My property manager has suggested contacting the tenants and saying that dog hair was found inside and the owners are concerned that pets are being allowed inside. Then saying that the owners won't be looking to renew the lease if that is the case.

Catalyst – Duplex won't be strata titled and after speaking to the bank twice, I have been informed that the loan on the duplex can be split into two separate loans. You're right about the properties being cross collaterised, but I'm happy for this to happen in order to form securities. We are both on great incomes and I'm confident that we can manage cash flow over the coming years while we work on building up those offset accounts.

All properties are I/O loans. I have done this on my current PPOR as we only plan to live in it for a few months while the units are being built. Then we'll have tenants in it. I also have a chunk of money in the offset account of the PPOR that is obviously offsetting the loan, but will also serve to pay off one of the units when it becomes my PPOR.

Hi JacM,

The reason i eventually want to do build a duplex and live in one side is for a couple of reasons.

1) We have only ever built properties brand new and we still wanted a "nice" newer house for ourselves. Something that we can stay in for many years while we cement a decent property portfolio.

2) It may sound silly, but we have a couple of nice jet skis and I often have to take one off the double trailer. I need space to do this and a single garage won't cut it.

In regards to a previous reply – We understand that there will be selling costs as well as stamp duty on newer place, however, we see these as a short term cost that will be out-weighed by long term achievements. My initial goal is to become mortgage free. This doesn't mean I pay off my entire loan. My understanding is that our new place will be around the 250k mark and we'll soon have 250k in the offset account. Purpose being that we are then able to direct our finances into the offset accounts on other properties. It also means that when I build a duplex I'm able to take out my finances and turn it into an IP???

Hope I have this all correct as this is the path I've directed us towards.